Bank of America Corp. is in talks with Fannie Mae to resolve a dispute over bad mortgages that the government-controlled entity wants the No. 2 U.S. bank to buy back, Reuters reported yesterday. The two sides have been in discussions for some time, but the talks have become more constructive recently, although a resolution is not imminent. In a quarterly securities filing yesterday, Bank of America said it is in dialogue with Fannie Mae to "address our ongoing differences." Of its $10.1 billion in unresolved claims with Fannie, it said that $7.3 billion is related to loans for which the borrowers have been paying for more than two years. Chief Financial Officer Bruce Thompson says that the spat will either end in a settlement or legal action.
